This comprehensive guide compiles key insights from SWK Technologies’ training sessions on the Acumatica Accounts Payable module, demonstrating the complete AP workflow from system configuration through daily payment processing. Connecting seamlessly to your General Ledger, Cash Management and Purchase Order modules, the integrated workflows here enable your finance team to take advantage of built-in automations to streamline vendor payments while retaining complete visibility into your cash flow.
Drawing on training resources provided by SWK’s team of expert ERP consultants for our customers, this detailed walkthrough breaks down essential configuration options, vendor management best practices and methods for making payment processing activities more efficient. Whether you are an existing Acumatica user looking to optimize your AP operations or evaluating accounting software features, this guide provides step-by-step instructions for leveraging the full capabilities of this financial module:
Setting Up Your AP Preferences and Configurations
This section covers the configurations that help set your business up for streamlined reporting, automated workflows and more:
Core System Preferences
In Acumatica, the AP Preferences screen serves as your control center for all payables operations, including functions and workflows such as:
- Numbering Sequences: Acumatica automatically generates unique batch numbers for AP bills, payments and price worksheets. This automated numbering prevents duplicate entries and maintains audit trails.
- Posting Configuration: You can configure the system to automatically post AP transactions to the general ledger upon release or maintain manual control for additional review steps. The “post summary” option consolidates similar GL entries, though most businesses prefer individual line items for detailed reconciliation.
- Migration Mode: This specialized setting allows clean data migration during go-live without creating duplicate journal entries.
Aging and Payment Controls
Acumatica’s aging configuration for vendor payments uses customizable buckets (default 30-60-90 days) that can be adjusted to match your business requirements. The payment lead time setting automatically suggests optimal payment timing based on vendor terms and due dates. The system also includes built-in duplicate prevention through vendor reference number validation, automatically flagging potential duplicate invoices before processing.
Vendor Management
Acumatica’s vendor management capabilities extend beyond basic contact information, offering sophisticated classification systems, automated setup workflows and integrated communication tools that streamline both initial vendor onboarding and ongoing relationship management.
Vendor Classification System
By creating vendor classes with predetermined defaults (payment methods, GL accounts, terms), new vendor creation becomes a simple selection process rather than manual field completion. For example, creating an “Accounting Services” vendor class with preset payment terms and expense accounts means every new accounting vendor inherits these settings automatically.
Comprehensive Vendor Profiles
Each vendor profile in Acumatica includes:
- Contact Management: Multiple contact roles (purchasing, accounting, management) with individual communication preferences
- Payment Configuration: Default payment methods, terms, and separate remittance addresses
- 1099 Setup: Built-in tax reporting with automatic box assignments
- Communication Tools: Integrated email capabilities and document storage
The ERP tracks vendor balances in real-time, displaying current outstanding amounts and prepayment credits directly on the vendor profile.
Invoice Processing
Acumatica’s flexible transaction types and intelligent approval routing ensure that invoices move smoothly from receipt to payment while maintaining proper controls and audit trails throughout the process.
Transaction Types and Workflow
Acumatica contains four primary AP transaction types:
- AP Bills: Standard invoice entry
- Credit Adjustments: Additional charges (functions like regular bills)
- Debit Adjustments: Credit memos for reducing payables
- Prepayments: Advance payments without corresponding invoices
Each transaction follows a clear status progression: On Hold → Balanced → Released → Open → Closed.
Invoice Entry Process
The invoice entry process in Acumatica relies on an intuitive design approach for ease-of-use:
- Document Creation: System assigns reference numbers automatically
- Vendor Selection: Prepopulated terms and payment methods based on vendor setup
- GL Distribution: Multiple account coding options with project integration
- Validation: Built-in document total validation prevents entry errors
- Approval Routing: Configurable workflows based on vendor class or amount thresholds
The ERP’s pop-up note functionality also displays important vendor information during invoice entry to keep users appraised.
Invoice Distribution Features
A single invoice can be split across multiple GL accounts, projects and cost centers. The system maintains the relationship between the invoice and all distribution lines, simplifying future inquiries and adjustments.
Payment Processing
Payment processing in Acumatica uses a structured three-step workflow. This approach provides multiple quality control checkpoints while maintaining an optimal processing speed. From payment selection through final release, each step offers specific controls and verification points that protect against errors while enabling bulk processing capabilities.
Three-Step Payments
Payment processing follows a logical three-step workflow:
- Prepare Payments: Select invoices for payment based on due dates, vendors, or payment methods
- Print Checks: Generate physical checks with proper formatting and numbering
- Release Payments: Finalize the payment process and update vendor balances
Advanced Payment Features
Additional vendor payment automations in Acumatica include:
- Batch Processing: Select multiple invoices across different vendors for simultaneous processing
- Error Recovery: Sophisticated reprint options handle misaligned checks without wasting check numbers
- Separate Payment Options: Configure individual checks per invoice when required
- Payment Methods: Support for checks, ACH and other payment types
Check Management and Positive Pay
The ERP manages check sequences automatically, preventing number gaps and maintaining proper audit trails. For businesses requiring positive pay files, Acumatica can generate the necessary bank files for fraud prevention. The additional remittance form feature automatically generates detailed payment documentation when check stubs exceed capacity (typically 10 invoices).
Reporting and Inquiry Capabilities
Acumatica’s real-time reporting capabilities, combined with flexible filtering and drill-down functionality, enable you to quickly access the information needed for decision-making, vendor communications and audit requirements.
Real-Time Vendor Analysis
Acumatica’s inquiry screens will include vendor information such as:
- Vendor Details Inquiry: Complete transaction history with filtering options
- Payment Registers: Date-range and check number analysis
- Aging Reports: Customizable aging periods and vendor groupings
- Balance Inquiries: Real-time outstanding amounts and credit balances
Audit Trail and Documentation
Every transaction maintains complete audit trails with journal entry links. Users can navigate seamlessly between AP documents and related GL entries, providing transparent financial tracking.
Integration and Usage
The accounts payable module’s integration touchpoints extend throughout the ERP system, from purchase order workflows and project accounting to general ledger posting and cash management, creating a unified financial ecosystem that improves both efficiency and accuracy.
Acumatica Module Integration
Acumatica’s integrated design connects AP processing with other modules:
- General Ledger: Automatic posting with module identification
- Purchase Orders: Coordinated approval workflows
- Project Management: Project-specific invoice coding and tracking
- Bank Management: Automated reconciliation capabilities (with some limitations requiring manual uploads)
Error Resolution and Corrections
The system provides comprehensive payment correction capabilities:
- Reversal Processing: Proper procedures for correcting posted transactions
- Adjustment Management: Credit memo application and processing
- Prepayment Application: Matching advance payments to received invoices
System Optimization
- Performance: Utilize batch processing for efficiency
- Security: Implement appropriate user access controls
- Backup: Maintain proper data protection procedures
- Monitoring: Regular system performance and user satisfaction reviews
Discover More Tips, Tricks and Other Features for Acumatica
SWK Technologies will help you get the most out of your ERP investment, leveraging our deep technological and industry knowledge as a top Acumatica VAR partner and Community resource. Check out some of our Acumatica videos and other educational resources, and reach out to us when you are ready to learn more tips and tricks to maximize your value return on your software.
Contact SWK here to gain access to more Acumatica tips, tricks, updates, and tailored demos.